Ois

ARTICLES ABOUT OIS BY DATE - PAGE 4

MUMBAI: Benchmarks were witnessing a choppy session with negative bias due to lack of support from global peers. Gains in metals and pharma stocks were offset by losses in auto, capital goods and oil&gas space. Trade is expected to remain lackluster ahead of December F&O series settlement. "Markets are likely to have a range-bound trading session. The sectors which are likely to see some action would be metals, oil and gas, along with select banking stocks. Also this being an expiry week for the F&O segment, the action gets shifted to the derivatives segment, specially the rollovers for the stock futures etc," said LKP Securities note.

MUMBAI: Overnight interest rate swaps (OIS) have risen to two-year high, as the benchmark 5-year OIS touched 7.72%, the highest since October 2008, on fears of another round of rate hike by RBI as inflation refuses to budge. The one-year swap was at 7.09%, again its highest since October 2008. An overnight interest rate swap is an agreement between two parties to exchange stated interest rate obligations for a certain period in respect of a notional principal amount, which is the size of the swap.

Devang Visaria, Chief Strategist, devangvisaria.com, in a chat with ET Now talks about the market . Is a bit of a tussle 6000 and around? We do not cross the 6150-6100 remark - strong resistance - and we do not break 6000. What is the near term call? In the near term - more or less for this expiry - we should just be range bound between this 5950-6200 levels. Any move in either direction should possibly have a 250 point implication for the next big move.

Bond yields fell to their lowest in two weeks on Thursday and traders said they expect the yield curve to flatten after the government raised the limit on foreign investment in debt. A marginal cut in the October-March borrowing also lifted sentiment. The 10-year benchmark bond yield ended down 4 basis points at 7.90%, its lowest since September 9 after trading in 7.90-7.96% range intraday. Volumes were heavy at Rs 12,445 crore ($2.7 billion). The government increased the cap on foreign investment in government and corporate bonds by $5 billion each to $10 billion and $20 billion, respectively.

For the past two weeks, longer end of government securities & OIS curves seem to be undergoing re-pricing of trading ranges. The same, however, is not drawing support from the remaining parts of respective curves yet. This week, we expect the shorter end trading nervously and longer end pushing towards its new range gradually. There may be more good news than bad news for yields, as liquidity has turned comfortable, RBI's hawkish tone has softened (more importantly, before the September 16 review)

Bond yields rose to fresh highs on Friday on concerns of sharper monetary action going ahead and traders said the selling pressure may remain next week as well due to tight cash conditions. The benchmark 10-year bond yield ended at 7.80%, after rising to 7.82% intra-day, it highest since May 7. It had ended at 7.78% on Thursday. The yield ranged between 7.76% and 7.82% during the day. Total volume on RBI's trading platform was a heavy Rs 8555 crore ($1.84 billion)

MUMBAI: Overnight indexed swap rates rose to fresh highs on Wednesday as investors grew more concerned about tighter liquidity conditions, a day after the central bank raised key rate more aggressively than expected. The most-actively traded one-year OIS rate rose to 6.20 per cent intra-day, its highest since Nov. 7, 2008, as per Thomson Reuters data. It ended at 6.14 per cent, from its previous close of 6.10 per cent. The benchmark five-year rate ended at 7.13 per cent, a level last touched mid-October, 2008, and from its previous close of 7.07 per cent.

MUMBAI: Five-year swap rates fell on Thursday, as the US Fed's policy statement on Wednesday flagged risks to the recovery of the world's largest economy, which may prompt central banks elsewhere to go slow on rate hikes, traders said. At the same time, tighter liquidity conditions in the banking system prevented receiving in short-term swaps, sending swap spreads to fresh lows. The benchmark five-year overnight indexed swap (OIS) rate ended at 6.70 per cent, from its previous close of 6.78 per cent.

MUMBAI: Interest rate futures have clocked trading volumes of Rs 276 crore in their very first day of trade. Trade in the newly-launched derivatives is expected to pick up with regulators and government officials stating that the exchange-traded instruments are superior to over-the-counter overnight index swaps. Trading in interest rate futures began on the National Stock Exchange (NSE) on Monday. The contracts are based on 10-year government bonds, bearing a notional coupon of 7% per annum, compounded every six months.

LONDON: The cost of borrowing dollars among banks in London capped its biggest weekly drop since March. The London interbank offered rate (Libor) that banks charge for three-month loans fell two basis points to 0.94% on Friday, completing an eighth week of declines, the longest run of decreases since February 2008. The Libor-OIS spread, a barometer of the unwillingness of banks to lend, fell to the lowest level in more than nine months. Libor, a benchmark rate for about $360 trillion of financial products worldwide, fell to below 1% for the first time this week, as reports on employment and home sales added to evidence the worst of the recession is over.